Sounds like the person worked for either free or very cheap in the hopes of advancing in the industry and getting big payouts.

Ironically, they probably took place of someone who stood their ground and demanded upfront pay.

The problem will persist as long as there is a supply of people who are willing to work for free or cheap.

This is very similar to video game development industry. There is a large pool of developers who are passionate about games and are willing to work for cheap with poor working conditions. The only real solution has been to dissuade new developers from trying to enter that niche and work in a different area with double pay and better conditions.